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Best Credit Cards of 2018

Jennifer Blocker

Updated on: 03/15/2018

The best credit cards can help you get back some of your hard-earned money. With the heyday of rewards
debit cards behind us, credit cards are the best way to get monthly bills and expenses to give something
back to you. With the plethora of cards available, it is a no-brainer that you would want one that earns
rewards. Credit cards have been and continue to be a great tool for financial management, and earning
rewards is the icing on the cake.

Sign-up bonuses have gone higher recently than I have ever seen them, with chart-topping bonuses
of over 100,000 points. Plus, rewards nowadays can often rake in a nickel per dollar spent. Get
in on the craze as these rewards and bonuses may not last forever. But remember to always spend responsibly
because paying interest on card balances takes away from your rewards.

Rated Best for Rewards

Rewards are all the rage. Banks are competing for your business. But with all the options out there
you may be asking: Should I be earning points or miles? Should I earn rewards with a fixed value or that
are transferable? Should I be focusing on cash back or travel rewards? The answers to these questions
will mainly depend on how you spend your money and what you want to do with your rewards.

All rewards are beneficial and useful, but they may not be created equal. One thing to know about
fixed-value rewards is that it usually won’t make a difference whether you are collecting points or miles.
A point or a mile will usually be worth one cent each. However, if points are transferable, values can
change depending on how you redeem them. The most important thing is not what kind of rewards you get,
but how you earn and use them.

10.99% intro APR for 14 months from date of first transfer, for transfers under this offer that post to your account by June 10, 2018

Regular APR

13.24% to 24.24%
Variable±

Annual Fee

$0

Rewards Program

Discover it® Miles Rewards

Bonuses & Rewards

1.5Miles on Airfare Purchases

1.5Miles on Hotels

1.5Miles on Gas

1.5Miles on All Other Purchases

Unlimited 1.5X rewards on every purchase offer

Miles earned are matched at the end of the first year of cardmembership

We will reimburse up to $30 of your in-flight Wi-Fi purchases each year with automatic credits to your statement

No Foreign Transaction Fee

Featured Benefits

$30 In-Flight Wi-Fi Access

You will be reimbursed for up to $30 in purchases of wireless internet access on an aircraft per anniversary year. The statement credit will be issued for the purchase amount in U.S. dollars within seven business days.

No Foreign Transaction Fees

The Discover miles card does not charge foreign transaction fees so you can rest easy when you are abroad.

Why should you get this card?

Great Earning Potential:
You always earn 1.5 miles per dollar spent,
which equates to 1.5 percent cash back.
Don’t settle for 1 percent! The Discover it Miles card is better.

Miles Can be Redeemed for Anything:
You don’t have to wait until you have travel coming up to use your miles. Even though the
Discover it Miles card earns Miles, it is a cash back card.

Miles Doubled for the First Year:
At the end of your first year as a card member, Discover will match all of the miles you’ve earned!

$30 in Annual Wi-Fi Credits:
Next time you have a long flight you can purchase Wi-Fi and have Discover cover the cost
up to $30 per year.

Our Expert's Conclusion

The Discover it Miles card is wonderful for two types of people. The first, and most obvious,
is for someone looking for a single credit card that’s easy to use and that can do it all. The Discover it Miles card is a
great option because it earns 1.5
miles per dollar spent on all purchases and redemptions areone cent per mile toward any purchase. Plus thereare a couple
of other nice benefits, like $30 in annual Wi-Fi credits and no foreign transaction fees.
As a no-fee card, all of that is essentially free.

The second type of person that the Discover it Miles card is a great option for is someone
who is looking to truly maximize rewards. The Discover it is basically a no-brainer for the
first year because all miles are doubled , meaning that it effectively earns 3 miles per
dollar spent (1.5 when you purchase
and 1.5 at the end of the year).
After the first year it deserves a spot in the wallet of someone who wants to maximize rewards for purchases not included
in the bonus earning categories of their other rewards credit cards.

0% introductory APR for 18 months from date of first transfer when transfers are completed within 4 months from date of account opening

Regular APR

14.74% to 24.74%
Variable±

Annual Fee

$0

Rewards Program

Citi® Double Cash Reward Program

Bonuses & Rewards

%2% on Travel

%2% on Dining

%2% on Gas

%2% on All Other Purchases

3% of each foreign transaction in U.S. dollars

%$5 or 3% balance transfer fee

Featured Benefits

Concierge service:

Citi Concierge helps you save valuable time with a staff of specially-trained experts who are ready to assist you with your travel, shopping, dining, entertainment and everyday needs.

Foreign Transaction Fee:

3% of each purchase transaction in U.S. dollars.

Why should you get this card?

No Annual Fee:
You’ll never have to pay anything for this card. That means all of the rewards you earn are pure bonus!

2% Cash Back on Everything:
You don’t need to keep track of specific categories that earn more or less cash back; everything earns 2%!

No Caps on Your Earning:
Some credit cards that offer higher cash back have a cap on how much you can earn, but not with the Citi Double Cash.

Late Fee Pass:
If you accidentally miss a payment, Citi has you covered and won’t charge you a late fee–but only once.

Our Expert's Conclusion

The Citi Double Cash mostly makes sense under two circumstances. The first is for someone who is
seeking simplicity. Since the Double Cash card doesn’t have rotating or any other type of bonus
categories to worry about, all you have to do is swipe, pay off your card and reap the benefits!

The second type of person that the Double Cash makes sense for is someone who has a few other
rewards cards that cover popular purchase categories, like groceries, gas and travel, but they’re looking
for a card for other purchases that otherwise would not earn a bonus. The Double Cash is a great option
for that!

Rated Best for 0% APR

When looking for cards that have 0% introductory interest rates for purchases or balance transfers,
there are several key details to consider. First, let's make it clear that credit cards that offer 0%
promotional rates on purchases will also come with 0% rates on balance transfers. However, this does
not work the other way around. Credit cards that offer 0% rates on balance transfers do not always
extend those rates to purchases.

If you are going to make a large purchase or need to finance an item, you will want a card with a
0% interest rate on purchases. These pose a much better financing option than store credit cards that
offer special financing because they have deferred interest. It is a much better feeling to get a lump
sum of rewards after making a large purchase instead of worrying about being slapped with a lump sum of
interest from a store credit card with a special financing agreement.

When comparing cards with no interest on balance transfers, your top factors should be the balance
transfer fee and the terms. How much will it cost and how long is the interest free period? The
only time it may be worth it to sacrifice earning rewards is to avoid interest. Paying interest will
easily devalue your rewards.

Choose your payment date:

Free FICO credit score:

Why should you get this card?

Saving on Purchases:
With the 0% introductory APR, all purchases you make – whether big or small – won’t accrue any
interest charges during the promotional interest period. This is especially convenient if you
have an unexpected expense, or maybe your income is seasonal or varies from month to month.
As long as you make the minimum payment each month, your 0% introductory period will continue.

Saving on Balance Transfers:
The Simplicity card not only comes with a great intro APR for purchases, but it also extends
to any balance transfer you complete within the first four months of being approved. Once you
initiate your balance transfer, it can take Citi up to 14 days to complete the payment to your
other bank, but then that transferred balance will also have a 0% interest rate.

Our Expert's Conclusion

The Citi Simplicity card is consumer friendly, offering benefits not commonly found with other
credit cards. Once approved, all your purchases for the first 21 billing cycles will not accrue
any interest charges. Additionally, if you make a balance transfer within the first four months
of opening your account, that balance will also get up to 21 months of no interest. Both are
amazing offers!

How does this work? Your interest rate for those 21 months is set at 0% as opposed to a low or
standard credit card interest rate. Don’t get carried away, though, because you still have a
credit limit, and after those 21 months are up, you have to start paying interest on any remaining
balance.

0% introductory APR for 21 months from date of first transfer when transfers are completed within 4 months from date of account opening

Regular APR

14.24% to 24.24%
Variable±

Annual Fee

$0

Rewards Program

Citi® Diamond Preferred®

Bonuses & Rewards

3% of each foreign transaction in US dollars

%$5 or 5% balance transfer fee

Why should you get this card?

Saving on Balance Transfers: Transferring balances from credit cards or other debts
on which you are paying interest is a great way to save some money. However, the Citi Diamond Preferred card charges
a fee of $5 or 3 percent of the balance, whichever is greater, when you conduct a balance transfer. So you should be
sure the interest savings are greater than the balance transfer fee before you make this decision. In addition, balance
transfers must be completed within the first four months of account opening in order to qualify for the promotional 0% APR.

Saving on Purchases: The savings available on new purchases are arguably the best use
of the introductory 0% APR. This is because new purchases, unlike balance transfers, do not come up with an upfront fee.
Therefore, you can use this feature to completely avoid interest and fees as long as you pay off the entire balance
before the 21-month 0% APR period is over. You must make at least the minimum payment to maintain the promotional rate.

Our Expert's Conclusion

The primary benefit of the Citi Diamond Preferred card is the 21-month introductory 0% APR. This benefit is very useful for people
trying to get out of debt or for people anticipating a large purchase which they would like to pay off over time without incurring
interest charges.

If you are currently paying a high interest rate on another credit card and have a considerable balance, transferring that
balance to the Citi Diamond Preferred card could result in significant savings. If you are in debt, interest payments and late
fees can make paying off your credit card balance seem difficult because these fees offset any potential reduction in the principal.
However, making a balance transfer to a credit card with a 0% intro APR can be a successful strategy for reducing your debt.

Since the Citi Diamond Preferred card has a 21-month 0% APR period, you can essentially take your current balance and divide by
21 to determine how much you will have to pay each month in order to pay the debt off completely before interest charges begin.

Rated Best for Business

Business owners have some of the biggest needs for credit. Having the proper credit limit can make or break
a business. Be aware that business credit cards are not only for corporations and large operations but
also for everyday businessmen and women as well. The sign-up bonuses on these cards make it worth turning
one of your hobbies into a small business just to get them.

You can apply for a small business credit card with your personal social security number. Keep in
mind that you do not need a large operation to be eligible for a business credit card. If you craft
and sell on Etsy, that’s a business. If you buy things to sell on eBay, that is also a business. No
matter how small your business is, if you have good personal credit, obtaining a business credit card
should be easy.

Although you may already be using your personal credit to finance your business, establishing and
building your business credit can be important to the success of your business as well. Business credit
cards are one of the best ways to begin to separate your personal life from your business, all while
obtaining an identity with a credit score for your business.

Business cards have higher limits than consumer credit cards. By the same token, business owners usually
have more costs and higher financing needs than the average Joe. These cards can be especially crucial in
times of economic instability, unforeseen circumstances or even keeping business afloat during seasonal
changes. You can get all this and access to a whole new line of welcome bonuses.

Why should you get this card?

Great Earning Potential:
Every purchase earns 2X miles. There are no category bonuses to think about and no limits.

Hassle-Free Redemptions:Spark miles can be used with any airline, hotel, cruise line, car rental agency and more.
There are no award charts to consider as miles can be used for statement credits whenever
you choose. Even better, there’s no need to worry about blackout dates or limited award space.

No Annual Fee for the First Year:
Once you sign up, the annual fee is waived the first year you have the card.
After that, you’ll pay just $95 per year.

Our Expert's Conclusion

Capital One’s Spark Miles card is a great way to manage day-to-day business expenses and
earn solid rewards at the same time. Unlike other travel cards, you have ultimate flexibility
to redeem your rewards however and whenever you see fit.

With no annual fee the first year, this card is a no-brainer. And because every purchase earns
double miles, that’s like getting 2 percent back toward travel every time you use the card.
If you travel for business and use multiple air carriers, various hotel chains and whatever
car agency has the best deal, you’re all set because your miles are good for just about
any type of travel. You’re not committed to just one airline or hotel group.

Plus, with the backing of Capital One and great built-in benefits offered through Visa,
you can shop with the confidence of knowing that you’ll have the necessary protections.

$500 cash bonus once you spend $4,500 on purchases within the first 3 months

Free Employee Cards

No Foreign Transaction Fee

Featured Benefits

No Foreign Transaction Fee:

Whether at home or abroad, there’s no need to worry about paying extra fees for purchases made
in non-U.S. dollars.

Visa Signature Luxury Hotel Collection:

Through the Visa Signature program, book one of the 900 hotels in the Luxury
Collection to enjoy premium benefits reserved only for certain cardholders.

Why should you get this card?

Great Earning Potential:
You’ll get 2.0%
back for every purchase you make. Every dollar you
spend earns two cents, which will get you a lot of cash back fast!

Big Sign-Up Bonus:
This card comes with a huge sign-up bonus worth $500.
That’s $500
toward a future vacation, $500 of holiday gifts or
$500 to repair the copier. It’s up to you!

Hassle-Free Redemptions:
You can redeem your cash back at any time for any amount
toward a statement credit or check in the mail. It’s your call.

Our Expert's Conclusion

If you’re looking for a business credit card that earns cash back, the Spark Cash for Business
is hard to beat. Getting 2.0 percent back on every purchase is a fantastic rate of return, and knowing
you don’t have to juggle multiple cards or keep track of where to use your card is a big plus. And at
just $95 per year after the first year, this card has a very reasonable annual fee.

Small business owners that are trying to decide if this card makes sense for them should carefully
consider how much they spend on their business cards each year. Although there are some cards
(see below) that earn cash back without charging a fee, the additional cash back you can get with
this card will likely be well worth the added cost. Don’t forget, the annual fee is waived the first
year, so you can try the card out and see if it works for you. Not only that, you’ll get a great
sign-up bonus, which is among the highest for a cashback business card.

While this card doesn’t come with a ton of travel benefits, and the rewards can’t be used in
conjunction with other travel loyalty programs, you do have the flexibility to use these rewards
as you see fit. If this sounds like a good fit for your business needs, you should seriously consider
the Spark Cash card.

Rated Best for No Annual Fee

Avoiding fees on a credit card is one of the easiest ways to keep your out of pocket costs down to nothing.
No annual fee cards are a must-have for your credit arsenal as they can benefit you in many ways. They may
not have the highest sign-up bonuses or the fanciest benefits, but they are easy to keep open for the long
term, which can help you keep your credit score optimal. They are also good for those who are looking to
increase the number of revolving accounts in their credit portfolio. Plus, they usually have low spending
requirements for welcome bonuses.

Some other fees to avoid are balance transfer fees and foreign transaction fees, which are both
usually around 3 percent. Of course, these fees are only relevant if you plan on transferring a
balance, traveling abroad or making purchases from a foreign entity. However, everyone should have
at least one credit card with no foreign transaction fees as they are offered so widely nowadays by
so many banks. One should have several no annual fee cards as well because they make for a good foundation
for your credit and help keep your credit healthy.

0% Intro APR for the first 15 billing cycles that your Account is open

Intro APR on Balance Transfers

0% Intro APR for the first 15 billing cycles that your Account is open

Regular APR

16.24% to 24.99%
Variable±

Annual Fee

$0

Rewards Program

Ultimate Rewards®

Bonuses & Rewards

%5% cash back each quarter on up to $1,500 in combined purchases in that quarter's bonus categories

%1% on All Other Purchases

$150 bonus after you spend $500 in the first 3 months

$25 bonus after you add your first authorized user and make your first purchase within this same 3-month period

3% of each transaction in U.S. dollars

Featured Benefits

Foreign Transaction Fee:

Best to leave this one at home when you travel abroad. You’ll be a 3% fee on all
international transactions.

Why should you get this card?

Awesome Earning Potential:
You’ll get 5 points per dollar spent in rotating bonus categories. The categories, which
typically include everyday expenses like gas, dining out and groceries, change every quarter.

No Annual Fee:
With no annual fee, the Freedom card is easy to add to your arsenal of rewards cards.
It’s also great for building credit since you can keep it forever at no cost and increase the age of your credit.

Compliments Other Ultimate Rewards Cards:
It’s easy and free to transfer the points you earn with this card to other UR cards. And if you have a
premium UR card, like the Sapphire Preferred, you’ll get even more value out of your points.

Our Expert's Conclusion

The short answer is yes! With no annual fee and impressive earning potential, this card is
really a no-brainer. Even if you don’t have a premium Ultimate Rewards card, the Chase Freedom
is still an excellent cashback card.

The only drawback is that it takes a little bit of work to get the most out of this card.
You have to register every quarter for the bonus categories, and you have to remember what
they are when you’re making purchases. You don’t want to use this card for all of your spending
because it earns only one point per dollar in non-bonus categories.

0% intro APR for 14 months from date of first transfer, for transfers under this offer that post to your account by April 10, 2018

Regular APR

12.24% to 24.24%
Variable±

Annual Fee

$0

Rewards Program

Cashback Bonus®

Bonuses & Rewards

%5% in rotating categories each quarter like Gas, Dining, Amazon.com, Wholesale Clubs and more

%1% on Travel

%1% on Groceries

%1% on All Other Purchases

Up to 5% cash back offer

Discover automatically matches all the cash back you earn dollar for dollar at the end of your first year

No Foreign Transaction Fee

%3% balance transfer fee

Featured Benefits

No Foreign Transaction Fee:

You won’t be hit with any additional fees for using your Discover card while traveling internationally.

Why should you get this card?

Cashback Match:
After your first year, Discover will double all of the cash back you earned with no cap!

Good Earning Potential:
The Discover it card earns 5% back on quarterly rotating categories that include things like dining and gas stations, and 1% back on all other purchases.

Hassle-Free Redemptions:
Your cash back is worth what you think it is, and there are no minimums or category restrictions to your redemptions.

No Annual Fee:
You’ll never have to pay anything for this card. That means all the rewards you earn are essentially free. How can you beat that?

Our Expert's Conclusion

Discover it is a solid credit card that should be in just about everybody’s wallet. The card offers a great five percent return on categories that rotate quarterly, and one percent back on all other purchases. The first year as a cardholder can be really good for your bank account because all the rewards you earn will be doubled by Discover, with no limit!

In addition to being a great everyday earner, the Discover it card doesn’t have an annual fee and doesn’t charge foreign transaction fees if you want to use the card abroad. Redeeming cash back is super simple with no minimum redemption amount and no restrictions about what you can use the cash back for.

Chase Freedom® Card

Ten Tips to Help You Get the Best Credit Cards

Before applying for a credit card, there are a couple of things you can do to increase your
odds of getting approved. Many of these things you should be familiar with, even if you are not
applying for a credit card and are just interested in maintaining general financial health.

Developing a skill or trade is many times about learning to use the tools and not just having
the degree or certificate. You can look at your financial health as the skill and credit cards as tools.
Once you have learned how to use your tools, the goals you can accomplish become larger and the rewards greater.

Tip #1: Know Your Credit Score

Before you begin applying for credit cards, know your credit score. This is one of the biggest
factors a lender will use to decide whether you will be approved for their card. Credit scores
generally range from 300 to 850.

To be eligible for the best credit cards you should have a score of at least 700, which is
considered to be good credit. A score of 750 and above is considered excellent credit, which
would make you eligible for top rewards credit cards and afford you the most pickings. Scores
between 650 and 699 is fair credit. There are still many offers available if you have
fair credit, but you should be careful how you use your credit and begin taking steps to
improve your score.

If you have a score of 649 or below, you need to immediately work on improving your credit.
Don’t even think about playing the points and miles game if you have bad credit, it will not work.
First, work on improving your credit.

Tip #2: Check Your Credit Report for Discrepancies and Errors

One in five Americans find errors on their credit report. Did you know things like a wrong
address or misspelling of your name could be a cause for denial? You also want to make sure all
you current accounts are correct. Then check the status of balances. Most cards report monthly but
some don’t.

Depending on the time of their reporting, even if you pay your balances in full each month,
it may sometimes look like you are carrying some debt. For instance, if they issue their report
the day after the statement comes out but you make your payment two weeks after that, there may
seem to be a balance when there really is no balance at all. If this is the case, consider
adjusting the date of your payment.

Tip #3: Don’t Apply for Too Many Cards at One Time

This can be a red flag for lenders. If you think filling out several applications will
broaden your chances of acceptance, you are wrong. If lenders think you are desperate for credit,
this can be a cause for denial.

Not to mention, you don’t want to obtain a new credit card before you have completed any required
spending it may take to earn a bonus on the previous card. Trying to meet the spending requirements
of several cards at one time can cause you to spend beyond your means. If that happens, you may
incur interest which will negate the value of the rewards you earned.

Tip #4: Don’t Apply for Cards that You Aren’t Qualified to Get

Make sure you are familiar with the card you are applying for. Don’t apply for cards that
require excellent credit if you only have good credit; don’t apply for cards that require
good credit if you have fair credit; and so forth and so on.

Tip #5: Keep Card Balances Low

Your credit utilization determines about 30 percent of your credit score. Your credit
utilization is how much of the limit are you using on a particular card. You never want
to use more than 30 percent of the credit limit you have been given. The higher you go
above 30 percent, the more of a negative impact it will have on your score. If you have
a $1,000 limit, anytime you carry a balance of more than $300, it can negatively impact your credit score.

Tip #6: Compare Cards

Don’t apply for just any card that comes in the mail. Being pre-approved does not mean
you are guaranteed to get the card. Do your research. Sites like ours make it easy to find
a plethora of information on credit cards and make informed decisions.

Tip #7: Include All of Your Income

Be sure to include all the income of your household. You do not need to be married to consider
the income of your significant other. The Consumer Financial Protection Bureau (CFPB) made an
amendment to the CARD Act of 2009 that allows applicants to use any household income that they
have access to. Be sure to also include investment income, alimony, child support and disability benefits.

Tip #8: Know the Card Issuer’s Specific Restrictions

Several major banks have set some rules and parameters in order to cut down on credit card churning,
which is the practice of opening up new credit cards just for the sign-up bonuses.

Chase has the 5/24 rule, which means that if you have opened more than five credit cards in
the past 24 months you may be denied. This is not only relevant to Chase accounts but refers to
all credit card accounts opened in the past 24 months. This rule mostly applies to their cards
that earn Ultimate Rewards points, such as the Chase Sapphire Preferred® Card.

With Citibank, you can’t apply for more than two personal cards in a 65-day period, but you can
earn multiple bonuses on the same card. However, there is a waiting period before you can apply
for the card again and get a second bonus. For instance, for the Citi Hilton Honors Reserve Card,
you must wait 18 months from the time you last closed the account.

American Express is among the strictest with their bonuses and only allows one bonus per
personal card per lifetime. They also allow cardholders to carry only four of their credit
cards at any one time.

Tip #9: Don’t Apply for Too Many Cards From the Same Issuer

Some issuers will have limits on how much credit they will extend to you. Whereas
American Express limits the number of cards they will issue a particular patron, Chase and
Citibank usually limit the overall amount they wish to lend any one person.

For instance, if Chase deems that you are eligible for up to $50,000 in credit, and you
already have four cards each with limits of $12,500, you will end up being denied if you apply
for a fifth card. However, after a call to the reconsideration line, you could shift some credit
between cards and still obtain the new card.

Tip #10: Call the Reconsideration Line

In the event that your application is denied, try calling the reconsideration line. It is
not rare to be approved by the reconsideration line after an initial rejection. Some bank-specific
restrictions trigger automatic denials, but there may be ways around them. If you still don’t get
approved, at least you will find out why you were denied. That can ultimately help increase your
odds in the future.

FAQs

Need more info? Check out our frequently asked questions.
If you have other questions, don't hesitate to leave a comment below.

You should have at least good credit to qualify for the best travel and rewards credit cards.
Good credit is considered a score of 700 to 750. If you have excellent credit, which is a score
of 750 or better, you will be eligible for the cream of the crop.

If you have excellent credit and are serious about earning rewards or traveling, don’t be
afraid of considering cards that have an annual fee. These cards not only have big sign-up
bonuses but come with many benefits and perks that offset the cost of the fee, like free
checked bags, lounge access, complimentary upgrades and so much more. The better your credit,
the more options you will have.

A good credit score is important not only for the types of credit cards you can get but
for so many more factors of life. Nowadays a credit score is seen as a reflection of a person's
level of responsibility. It can affect things like insurance rates. It may also be looked at by
a potential employer or landlord.

It will also affect your ability to get a home and how much the home will cost you. The
better your credit score the better interest rates you will get. A couple of points today can
end up costing tens of thousands of dollars of interest payments on a mortgage in the future.

There are several credit scoring models. The two most well-known and widely used are
VantageScore and FICO. If you use an app to keep up with your credit score, you may be more
familiar with the VantageScore which is use by consumer reporting agencies, such as Trans Union,
Equifax and Experian.

But did you know that most lenders use the FICO score when determining your creditworthiness?
Because your FICO Score is more widely used by those determining your creditworthiness, let us take
a look at how a FICO score is determined.

The most important factor will be your payment history, which accounts for about 35 percent
of your score. Next, they will look at your debt and the amounts you owe, also known as your
credit utilization, which will account for 30 percent of your score. About 15 percent of your score
is determined by the length of your credit history. The types of credit you use and how much new credit
you have has less impact, at 10 percent each.

It is best to be familiar with your FICO score as this is the scoring model most lenders
use to determine your eligibility when reviewing credit card applications. However, you should
know your VantageScore as well.

The scoring models are similar but do have some differences. VantageScore was recently
updated and the 3.0 version now more closely matches the FICO scoring system with a range
of 350 to 850 (it previously went up to 990). This was one of the major differences; however,
there are still some important differences.

One of the major differences, and what makes VantageScore friendlier to many of those new
to the credit world, is that FICO requires at least six months of history to generate a credit
report. VantageScore will give you a number after only one month.

Another difference is that FICO treats all late payments equally. VantageScore has harsher
penalization for those who miss a mortgage payment. If you were to miss a mortgage payment,
this would have more of an impact on your VantageScore.

There are also slight differences in the scoring methods when it comes to hard inquiries.
Each system has a benefit not provided by the other. They may both treat multiple inquiries
within a period time as a single inquiry but in different ways. FICO uses a 45-day span of time,
while Vantage uses a two-week period. On the other hand, Vantage applies this across all types of
credit, while FICO only does it for mortgage, auto and student loans. Hard inquiries don’t have a
major scoring impact, but you should be aware of how they affect your credit.

The final difference is when it comes to collections accounts. VantageScore 3.0 ignores paid
collections accounts while FICO 8 entirely ignores all collections in which the balance was under $100.
All in all, the biggest difference to keep in mind is the fact that 90 percent of lenders use FICO,
while VantageScore is mostly accessed by the consumers themselves.

One of the best ways to help pay off your credit card debt fast is using balance transfer
credit cards. They can help in two ways. You can lower the interest you pay while consolidating
your debt by lessening the amount of interest you are charged. It will make it easier to put that
amount to the bottom line. Over the course of a year, you could easily save hundreds of dollars.
Consolidating your debt will allow you to focus your payments and make it easier to make sure
you don't miss one.

Cards that have 0% interest on purchases will also extend that rate to balance transfers. So
why would you consider getting a card with the 0% only on balance transfers? If you are comparing
cards, you may find that the card that only offers the promotional rate on balance transfers may offer
better rewards. This is not always the case but may be a deal breaker for some.

There is no need to have a card that has a 0% APR on purchases if you are keeping up with your
current obligations and just want to pay down your existing debt. A balance transfer fee will usually
range between 3 and 5 percent. However, there are cards with no balance transfer fees as well. The
Chase Slate® Credit Card, for instance, has no balance transfer fees. But this card does not earn rewards.